LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 20, 1997
TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 631
Committee on State Affairs By: Haywood
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB631 ( Relating
to the compensation of retired state employees who return to
work for, or contract with, the state.) this office has detemined
the following:
Biennial Net Impact to General Revenue Funds by SB631-As Introduced
No significant fiscal implication to the State is anticipated.
This bill would limit the amount of salary and compensation
that ERS and TRS retirees would receive if they were re-employed
by the state or if they contracted to provide services to a
state agency. This analysis assumes that any retiree who returned
to work for the state would terminate employment once the maximum
annual salary had been paid, and that the employing agency would
then fill that position with a new hire. The salary of the
new hire could be higher or lower than the salary paid to the
rehiree. Similarly, this analysis assumes that any retiree
providing contracted services to a state agency would only provide
an amount of services commensurate with the value of the contract
as limited by this bill, and that the contracting agency would
then contract with another provider to supply the balance of
the needed services.
No fiscal implication to units of local government is anticipated.
Source: Agencies: 304 Comptroller of Public Accounts
327 Employees Retirement System
323 Teacher Retirement System and Optional Retirement Program
LBB Staff: JK ,JD ,SC